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AR/VR Headset Shipments Slow in Q1 2023 as the Market Awaits Wide Availability of Next Gen Headsets, According to IDC

NEEDHAM, Mass.–(BUSINESS WIRE)–#AR–Global shipments of augmented reality (AR) and virtual reality (VR) headsets slowed significantly in the first quarter of 2023 (1Q23) as macroeconomic conditions worsened and the market cooled compared to the pandemic driven highs seen last year. According to new data from the International Data Corporation (IDC) Worldwide Quarterly Augmented and Virtual Reality Headset Tracker, the overall AR/VR headset market declined 54.4% year over year in 1Q23 with VR headsets representing 96.2% of headsets shipped.

Among the top 5 AR/VR headset makers, Meta continued to lead with 47.8% share although it did lose ground to Sony’s PSVR 2, which captured 35.9% share during the quarter. ByteDance (Pico) managed to grow its share from 4.4% last year to 6.1% this year thanks to new products and new markets. DPVR and HTC rounded out the top 5 with each having less than 2% share.

“Despite the recent downturn, it’s an exciting time for the AR/VR market as new entrants and the next generation of headsets are expected to rollout in the coming weeks and months,” said Jitesh Ubrani, research manager, Mobility and Consumer Device Trackers at IDC. “After Sony reemerging as a major competitor to Meta, all eyes are on Apple, which has yet to announce its headset. Apple’s sizeable installed base of existing products and services will certainly help set the company’s headset apart from other AR/VR vendors though Apple’s share gains will be limited in the near term given the rumored prosumer approach and hefty price tag associated with the headset.”

In addition to new devices from multiple companies, the AR/VR market is still in its critical developmental stages. “It’s amazing to see the new features and functionalities appearing on AR/VR headsets today, and although they may appeal to a select audience initially, these will evolve and eventually gain salience with users,” says Ramon T. Llamas, research director for Mobile Devices and AR/VR at IDC. “Features like eye tracking and environmental sensors, and the potential of AI-powered experiences and software – all of which are in their infancy today – will eventually become more ubiquitous and spur new use cases. Even the AR/VR headsets arriving as early as 2025 will make today’s headsets look quaint.”

While VR headsets (those that occlude a user’s vision) currently dominate the overall market, AR headsets (with see-through or semi-transparent displays) experienced another solid quarter of growth in 1Q23, up 12.6% year over year. The market was driven by simplistic headsets from the likes of Nreal (now Xreal), which act as external displays for connected devices. Meanwhile, more advanced headsets capable of simultaneous location and mapping (SLAM) and 3D object manipulation suffered during the quarter largely due to Microsoft’s struggles.

A graphic illustrating the worldwide market share of the top 5 AR/VR headset companies over the previous five quarters is available by viewing this press release on

About IDC Trackers

IDC Tracker products provide accurate and timely market size, vendor share, and forecasts for hundreds of technology markets from more than 100 countries around the globe. Using proprietary tools and research processes, IDC’s Trackers are updated on a semiannual, quarterly, and monthly basis. Tracker results are delivered to clients in user-friendly Excel deliverables and on-line query tools.

For more information about IDC’s Worldwide Quarterly Augmented and Virtual Reality Headset Tracker, please contact Jackie Kliem at 508-988-7984 or

Click here to learn about IDC’s full suite of data products and how you can leverage them to grow your business.

About IDC

International Data Corporation (IDC) is the premier global provider of market intelligence, advisory services, and events for the information technology, telecommunications, and consumer technology markets. With more than 1,300 analysts worldwide, IDC offers global, regional, and local expertise on technology, IT benchmarking and sourcing, and industry opportunities and trends in over 110 countries. IDC’s analysis and insight helps IT professionals, business executives, and the investment community to make fact-based technology decisions and to achieve their key business objectives. Founded in 1964, IDC is a wholly owned subsidiary of International Data Group (IDG), the world’s leading tech media, data, and marketing services company. To learn more about IDC, please visit Follow IDC on Twitter at @IDC and LinkedIn. Subscribe to the IDC Blog for industry news and insights.

All product and company names may be trademarks or registered trademarks of their respective holders.


Jitesh Ubrani


Ramon T. Llamas


Michael Shirer


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